Overheard staff call today. Director talking about controlling response to STI number. Emphasize the RSU bonus so that it almost comes out to the average.
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Fun fact: if not enough employees in the overall company contribute to the 401k then the "highly compensated employees" cannot do so pre-tax either because 401k is designed to be for everybody in the company and not just the executives. HCE in 2018 is $120K a year.
113 % STI.
profit sharing % is applied to your salary + ( target incentive or sales commission). It is not prorated.
2cvv....Thank you.
The percentage is 0-3% and prorated down if you're contributing less then 6% into your own 401k. Historically we've generally gotten 2% but we've seen 1 and 3% Never 0.
Fun fact: if not enough employees in the overall company contribute to the 401k then the "highly compensated employees" cannot do so pre-tax either because 401k is designed to be for everybody in the company and not just the executives. HCE in 2018 is $120K a year.
How does the profit sharing work again? They come up with a percentage 1, 2, or 3% and it is that % if your 401K balance on a given date?
125%, bigger than 4g just wait and see
I am hearing that the STI is going to be above 100%. It is already in writing that the STI will be paid in your 22 February pay and the RSU will be paid out in your 22 March Paycheck
I don’t think they are saying STI was knocked down due to RSU (Mgmt special stock award).
What they are saying is their STI is going to be bad and someone somewhere concocted the scheme to say hey but you got 25ish RSUs vested that you’ll get so it all evens out.
Now in my conspiracy theory hat I find it an awful coincidence that our groups score was low when they came out with the 401k annual bonus and now this year it’ll be low again when we have RSUs getting vested and paid out. I kinda wish they’d keep their special programs that further split up money.
Realistically STI will be less than 100%. With cost savings initiatives I would be surprised if it's more than 85% or less than 70% this year. My gut feel is that it will be in the low 80% range with the message "let's work for a better one next year."
RSU is extra cash, but hardly a motivation to drive revenue as stated on today's call. Stock price at $50 would give us a payout $1250; stock price at $60 would give us a pay out of $1500. VZ should replace the 401k profit sharing and look into a form of EPP to turn workers into shareholders.
What is RSU?
profit sharing not changed and paid same time as always
I bet they screw us on profit sharing this year...the RSUs were probably just a ruse to make us feel better about it.
Coincidentally, both will probably be paid at the end of March. Hm...
RSUs have no direct bearing on the STI budget allocation. You are required to receive an STI between the min/max amount based on your performance. If everyone were gigged due to RSUs they'd leave STI budget on the table. They are certainly free to do that, but I personally don't know any manager that would.